A core argument of Paramount Skydance’s opposed takeover bid for Warner Bros. Revelation is this: WBD’s cable networks like CNN and TBS are not worth as much as the David Zaslav-lead company’s deal with Netflix implies, Paramount claims.
It’s hard to do an apples-to-apples comparison of the two proposals. But here’s how the math works out, according to Paramount. The most recent $30/share offer from Paramount Skydance (all cash) is for the full company, including its TV biz (equity value: $77.9 billion).Netflix’s $27.75/share agreement with WBD (84% cash) covers the Warner Bros.TV and film studios arms, plus HBO, HBO Max and the games division (equity value: $72 billion) – excluding the non-HBO TV networks.
Since Warner Bros. Discovery accepted Netflix’s deal terms and rejected paramount’s proposal, the assumption is that WBD’s board concluded the Netflix offer was in the best interests of Warner Bros. and its stockholders – i.e., Netflix’s offer was worth more than Paramount’s.
That would imply WBD is ascribing a value of at least $2.25/share to the TV networks group, slated to be named Discovery Global and spun off in Q3 2026 ahead of the proposed Netflix transaction. But Paramount argues that the value of WBD’s networks group is actually much lower: roughly $1/share, working out to an equity valuation of about $2.6 billion.
“Even after assigning value to the global network stub,total value to WBD shareholders in the Netflix deal does not exceed $30 per share,and ours is in 100% cash,” ellison told investors on a call monday. “The Netflix deal leaves [Warner Bros. Discovery] shareholders with a highly levered declining global network stub,creating value uncertainty.”
“The Netflix proposal leaves shareholders with stock in WBD’s Global Networks business, which is saddled with debt,” Ellison added. “how is WBD attributing value to this equity?”
Paramount Explores Acquisition of Warner Bros. Discovery’s TV Networks Amidst Industry shifts
Paramount Global is actively pursuing the acquisition of Warner Bros. Discovery’s (WBD) television networks, despite acknowledging the challenges facing the traditional linear TV market.The potential deal centers around WBD’s planned separation of its TV networks group, to be called Discovery Global, from its streaming and studio businesses.
According to reports, Paramount believes significant synergies can be achieved by combining WBD’s networks with its own linear assets. Ellison, speaking on an earnings call, highlighted this potential, stating the acquisition is attractive “as when you put WBD’s TV business]together with our linear business, there are significant synergies.” Paramount executives expressed confidence in their ability to leverage their experience with their existing TV business to maximize the value of WBD’s brands, which include CNN, TBS, TNT, discovery Channel, HGTV, Food Network, OWN, TLC, Magnolia Network, and Travel Channel.[https://varietycom/2025/biz/news/david-ellison-paramount-courted-warner-bros-discovery-zaslav-1236604323/[https://varietycom/2025/biz/news/david-ellison-paramount-courted-warner-bros-discovery-zaslav-1236604323/
The deal’s financial implications are also being considered. Analysts anticipate Versant, a potential buyer, could pay a 3x EBITDA multiple for WBD’s networks, assuming a net debt-to-EBITDA ratio of 1.25x.
discovery Global Separation & Current status
WBD initially announced plans in June 2025 to separate its businesses into two publicly traded companies: Warner Bros. (streaming and studios, led by David Zaslav) and Discovery Global (TV networks, headed by current WBD CFO Gunnar Wiedenfels). https://www.wbd.com/investors/news/press-releases/2024/06-13-2024-wbd-announces-separation-of-businesses/ Discovery Global also includes TNT Sports in the U.S.,free-to-air channels in Europe,and digital products like Discovery+ and Bleacher Report.
The separation is now expected to be completed in the third quarter of 2026, before the closing of a separate transaction involving Netflix. However, this timeline is contingent on whether Paramount, backed by Skydance, succeeds in its bid for WBD’s TV assets.
Recent Developments
recent reports indicate that David Ellison of Paramount Skydance aggressively pursued a deal with Warner Bros.Discovery CEO David Zaslav over a 12-week period, only to have dialog cease abruptly. https://variety.com/2025/biz/news/david-ellison-paramount-courted-warner-bros-discovery-zaslav-1236604323/
This pursuit underscores Paramount’s strong interest in consolidating its position in the evolving media landscape, even as the traditional television industry faces headwinds.
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